Tarsadia Capital LLC Trims Position in Sunstone Hotel Investors, Inc. $SHO

Key Points

• Tarsadia Capital LLC has reduced its stake in Sunstone Hotel Investors by 29.5%, now owning approximately 0.30% of the company, which remains its largest holding.
• Sunstone Hotel Investors announced a quarterly dividend of $0.09 per share, yielding 4.0%, while maintaining a high payout ratio of 1,800.00%.
• The stock currently has a market cap of $1.71 billion with a price-to-earnings ratio of 450.23, while analysts project an EPS of 0.79 for the current fiscal year.

Tarsadia Capital LLC decreased its holdings in Sunstone Hotel Investors, Inc. (NYSE:SHO - Free Report) by 29.5% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 598,885 shares of the real estate investment trust's stock after selling 251,115 shares during the period. Sunstone Hotel Investors accounts for about 100.0% of Tarsadia Capital LLC's holdings, making the stock its biggest position. Tarsadia Capital LLC owned 0.30% of Sunstone Hotel Investors worth $5,636,000 at the end of the most recent quarter.

A number of other institutional investors also recently modified their holdings of the business. American Century Companies Inc. grew its stake in Sunstone Hotel Investors by 4.5% in the 1st quarter. American Century Companies Inc. now owns 88,451 shares of the real estate investment trust's stock valued at $832,000 after buying an additional 3,793 shares in the last quarter. Aberdeen Group plc boosted its holdings in shares of Sunstone Hotel Investors by 2.3% in the first quarter. Aberdeen Group plc now owns 73,502 shares of the real estate investment trust's stock worth $692,000 after acquiring an additional 1,669 shares during the period. Vision Capital Corp bought a new position in shares of Sunstone Hotel Investors in the first quarter worth $5,646,000. Resona Asset Management Co. Ltd. grew its position in shares of Sunstone Hotel Investors by 9.9% in the first quarter. Resona Asset Management Co. Ltd. now owns 87,385 shares of the real estate investment trust's stock valued at $827,000 after purchasing an additional 7,867 shares in the last quarter. Finally, Public Sector Pension Investment Board raised its stake in shares of Sunstone Hotel Investors by 27.3% during the 1st quarter. Public Sector Pension Investment Board now owns 637,090 shares of the real estate investment trust's stock valued at $5,995,000 after purchasing an additional 136,539 shares during the period. 99.37% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several brokerages have commented on SHO. JPMorgan Chase & Co. initiated coverage on Sunstone Hotel Investors in a research note on Monday, June 23rd. They issued an "underweight" rating and a $8.00 target price for the company. Bank of America raised shares of Sunstone Hotel Investors from an "underperform" rating to a "buy" rating and set a $10.00 price target on the stock in a report on Wednesday, April 30th. Wells Fargo & Company reduced their price objective on shares of Sunstone Hotel Investors from $9.00 to $8.50 and set an "equal weight" rating for the company in a research note on Tuesday, July 1st. Finally, Evercore ISI increased their target price on shares of Sunstone Hotel Investors from $10.00 to $11.00 and gave the stock an "outperform" rating in a research note on Monday, July 28th. Two research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, Sunstone Hotel Investors has an average rating of "Hold" and an average target price of $9.07.

Sunstone Hotel Investors Price Performance

Shares of NYSE SHO traded up $0.3750 during trading hours on Friday, reaching $9.4750. 759,381 shares of the stock traded hands, compared to its average volume of 2,378,781. The company's 50-day simple moving average is $8.88 and its two-hundred day simple moving average is $9.19. The company has a market capitalization of $1.80 billion, a P/E ratio of 474.49, a price-to-earnings-growth ratio of 3.36 and a beta of 1.30. Sunstone Hotel Investors, Inc. has a 52-week low of $7.45 and a 52-week high of $12.41. The company has a quick ratio of 2.73, a current ratio of 2.73 and a debt-to-equity ratio of 0.51.

Sunstone Hotel Investors (NYSE:SHO - Get Free Report) last issued its earnings results on Wednesday, August 6th. The real estate investment trust reported $0.28 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.26 by $0.02. The business had revenue of $259.77 million during the quarter, compared to analyst estimates of $256.68 million. Sunstone Hotel Investors had a return on equity of 1.12% and a net margin of 2.15%.Sunstone Hotel Investors's revenue for the quarter was up 5.0% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.28 earnings per share. Equities research analysts forecast that Sunstone Hotel Investors, Inc. will post 0.79 EPS for the current year.

Sunstone Hotel Investors Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 15th. Shareholders of record on Tuesday, September 30th will be paid a $0.09 dividend. The ex-dividend date of this dividend is Tuesday, September 30th. This represents a $0.36 annualized dividend and a yield of 3.8%. Sunstone Hotel Investors's payout ratio is currently 1,800.00%.

Sunstone Hotel Investors Profile

Sunstone Hotel Investors, Inc is a lodging real estate investment trust ("REIT") that as of the date of this release owns 14 hotels comprised of 6,675 rooms, the majority of which are operated under nationally recognized brands. Sunstone's strategy is to create long-term stakeholder value through the acquisition, active ownership, and disposition of well-located hotel and resort real estate.